254 companies bid for Nigerian crude grades: NNPC

Nigeria CGNigeria is a leading exporter of crude grades to the international marketplace. (Image source: Thomas Hawk/Flickr)The Nigerian National Petroleum Corporation (NNPC) has started the process for the selection of off-takers for Nigeria’s crude oil grades in 2018, with 254 companies expressing interest to participate in the bid

Eventual winners are expected to be off-takers licensed to trade on the Nigeria’s equity crude for a 12 months period, according to NNPC.

The allocation of crude oil in Nigeria is done once every month to the successful companies.

Addressing the prospecting off-takers before the commencement of the bid exercise, Dr Maikanti Baru, group managing director of NNPC, said that the exercise aims to promote greater participation of Nigerian enterprise, while preserving international standards. He further ensured transparency in the process for the selection of bidders.

“I wish to remind the general public that the crude oil term contract is not a procurement contract but a process of selecting partners for the sale and procurement of NNPC Equity crude oil volumes,’’ Dr Baru clarified during the bid opening session.

Providing further insight into the 2018/2019 crude term bid exercise, Malam Mele Kyari, group general manager for crude oil marketing division at NNPC, informed that potential off-takers must be able to fulfil some requirements which include minimum annual turnover of US$500mn for 2016 and net worth of US$250mn for 2016.

He added that apart from possession of 2015 and 2016 audited accounts, aspiring off-takers must demonstrate the ability to establish an irrevocable letter of credit (LC) subject to contract terms.

Kyari futher added that Europe remained the major destination of Nigerian crude grades, accounting for 36.59 per cent of the total sales, with Asia and the Far East receiving 28.43 per cent. Additionally, about 16.57 per cent of Nigeria’s crude grades was exported to North America, 13.17 per cent to Africa, 2.84 per cent to South and Central America, while the rest of the world served as beneficiaries for the rest.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

twn Are you sure that you want to switch to desktop version?